MAKING A BEQUEST
What is a bequest?
A charitable bequest is the most popular and simplest way that countless people of all financial means can use to support the organizations they care about. A bequest is a transfer by will of property such as cash, securities, or tangible property to an individual or a charitable organization.
When is a bequest an appropriate vehicle for making a gift to Michigan?
For many donors a bequest offers the opportunity to make a more substantial gift than would be possible during the donor's lifetime. Other donors view a bequest as an opportunity to round out a lifetime of giving with a lasting legacy to the University.
Because of the tax advantages associated with a bequest to a charitable institution, assets from your estate that would otherwise go directly to government treasuries can instead be given to the University to meet faculty, student and program needs.
What may I bequeath to the University of Michigan?
Most commonly, alumni/ae and friends of the University bequeath cash or securities to the University. But gifts of real estate, such as a personal residence, or works of art or antiques are also left to the University.
What are the different types of bequests?
- The most common type of bequest is one in which you direct cash or specific assets to Michigan. These might include securities, real estate or personal property. Sometimes the bequest is stated as a fixed amount or value; it can also be stated as a percentage of your estate.
- With a residuary bequest, you direct that Michigan receive all or part of your estate remaining after other specific bequests and expenses related to settlement of your estate have been made.
- With a contingent bequest, you name Michigan as the recipient of your estate only if others named in your estate plan are not living at the time of your death.
What other methods are available for giving to the University after my death?
- A testamentary trust can be written into your will so that that trust is established upon your death to provide income to your spouse and/or beneficiaries during their lifetimes, after which the assets of the trust are given to Michigan.
- You can designate by beneficiary, providing that the University of Michigan will be the beneficiary of the remainder of your IRA, Keogh plan, tax shelter annuity or qualified pension, profit sharing plan or life insurance plan.
Does the University want to know my bequest intentions?
The University recognizes that your bequest intentions are a personal matter and that you may quite understandably wish to keep them confidential. If you are willing to inform us, however, knowledge of your intentions is very helpful to Michigan in its financial planning and qualifies you for membership in The John Monteith Society. Please call the Office of Medical Development for a Monteith application. Your reply will be kept in the strictest confidence.
How do I go about making a bequest to Michigan?
Suggested language for a bequest to Michigan is included below. It is not intended as legal advice. You should seek the advice of your own attorney. Your attorney is encouraged to consult with University legal counsel or the Office of Medical Development for further guidance.
Suggested Wording for Making a Bequest to the University of Michigan Health System
Specified Bequest
"I give and devise to 'the Regents of the University of Michigan,' a Michigan constitutional corporation having the control and management of the University of Michigan at Ann Arbor, Michigan, for the benefit of the (specify: Medical School, a department, a program, a unit) of the Health System,
a) the sum of _______________; or
b) a portion of my estate totaling _____% thereof; or
c) the following described real estate or personal property: ________________;
to be used by said corporation at its discretion, or, (for the following purpose
____________________)."
Residual Bequest
"All (or _____%) of the residue of my estate, both real and personal property of whatever kind and wheresoever situated, which I may own or have the right to dispose of at the time of my death, I give and devise to 'the Regents of the University of Michigan,' having the control and management of the University of Michigan at Ann Arbor, Michigan, for the benefit of the (specify Medical School, a department, a program, a unit) of the Health System, to be used at its discretion, or, (for the following purpose: ____________________________)."